How did it come to this? Managing your legal department and controlling legal costs has all of the excitement of the new NFL season, but with all of the satisfaction of filing your taxes with an amount due. (Read More)
September 12, 2009
February 27, 2010
Council on Litigation Management Publishes Litigation Management Guidelines
After 2 years in development, the CLM has finalized a universally accepted set of Litigation Management Guidelines for use between insurance companies and insurance defense firms. The CLM welcomes comments and questions are welcome.
Snow Storms, Workflows and Mrs. Carmody’s Poodle
Greetings from Pittsburgh, where the winter scene looks much as it did back in 1977, the last time we saw this much snow. As the weather cycle repeats itself, I’m reminded how back then, I was just a goofy little kid, thankful for the 2-hour delay St. Edward Elementary bestowed upon us after about a foot of snow fell overnight. Good times.
As I shoveled my driveway for the third time in as many days, I got to thinking about how data can start piling up just as easily: Legal invoices, budgets, analyses, adjustments, reserve schedules – you name it. I also began to find creative places to put it, all of which are problematic - back out on the street, next to the fire hydrant, in my neighbor’s driveway (that’s actually ok. They deserve it. They’re in Hawaii for three weeks). (Read More)
February 19, 2010
Kraft rewards law firm for sticking with the billable hour
Food giant Kraft Foods has rewarded one of its law firms for its common sense approach to reducing and controlling legal costs. This in and of itself isn’t so surprising, inasmuch as companies like DuPont, United Technologies and others have taken similar actions. The big difference is that Kraft has lauded Morgan Lewis for controlling legal costs using the billable hour, as opposed to alternative fee arrangements.
Given the rush to alternative fee arrangements since the recession began, might we be seeing a new equilibrium emerging, where alternative fees drive new thresholds of billable hour efficiency?
February 4, 2010
Overtime Suits Make Their Way to Small Business
Once reserved almost exclusively for big business, overtime lawsuits are targeting smaller companies. Part of this shift is the result of large organizations becoming more adept at defeating such suits. Additionally, as one attorney put it, “there are only so many class actions you can bring against Wal-Mart before you’ve exhausted the pool.”
This trend has not been good news for small business, where owners and managers have little experience in controlling legal costs. Sacramento-based Foremost Superior Marble settled an overtime suit brought by three former employees. The suit lasted eighteen months and cost the company $400,000 in legal fees. As the economy limps along, expect more small- and middle market companies to face similar suits.
There is one downward trend, however, in California. (Read More)
February 3, 2010
Litigation Rising: Numbers Behind the Obvious
Results of a fourth quarter 2009 survey of 408 public and private companies found litigation is still on the rise. Some 83% of attorneys responded that their companies were sued in 2009, up from 79% in 2008. In addition, 42% of those surveyed expect to see litigation increasing in 2010. Houston-based Greenwood Associates conducted the survey on behalf of Fulbright and Jaworski LLP.
These results should come as no surprise. The current economic climate exacerbates companies’ struggles with controlling legal costs, as increased regulation, employment issues, bankruptcies and other issues continue to dominate the schedules of GCs.
February 2, 2010
Clients Still Looking for Value
Robert Half Legal’s recent survey lends further support to clients seeking greater value for their dollar.
Corporate counsel seeking more value from outsourced law services
February 1, 2010
The Market at Work: Lawyers at Mega Firms Jump to Smaller Firms with Lower Rates
The following article discusses how some lawyers at higher-priced firms are jumping to smaller firms with lower rates, in response to client demands. This is yet another way the market is dealing with the repricing of legal services.
January 31, 2010
With M&A on the Uptick, Some Firms see Legal Rebound
With prices of companies beaten down and VC activity percolating, there are signs that M&A activity is starting to heat up (although that might be a relative term). As acquiring companies begin to see better value, the demand for M&A legal services is on the rise, at least in the San Francisco area.
January 20, 2010
Why Some Firms Are Increasing Rates in a Buyer’s Market
Certain firms are increasing their rates for more experienced associates. In a climate in which alternative (fixed) fees are becoming more and more popular, I view this uptick in rates as a hedge against potential cost overruns in fixed fee arrangements.
While we’ve seen a shift in economic power from attorney to client, I’ve encountered more general counsel who are less concerned with merely negotiating lower rates than they are with a more holistic approach to cost control – an approach that not only reduces costs, but also manages expectations and improves performance.
Our clients want to reduce fees and expenses, but if the tradeoff is a decrease in quality or an increase in administrative oversight (of less experienced associates), any short-term economic benefit will be far outweighed by more fee volatility and a contentious relationship. Some, therefore, are willing to pay for more experienced attorneys as long as there are corresponding increases in predictability and efficiency.
January 4, 2010
Predictable New Year!
It’s January, the start of a new year, and a time to say good-bye to 2009. But if you’re like most law department managers looking at 2010, perhaps ”happy” is a stretch goal. “Sane” would be nice, and really goes without saying, so I apologize for even bringing it up. How about “predictable” - predictability in the nature, timing and level of legal fees and expenses? (Read More)